Swifty Corporation recorded operating data for its shoe division for the year as follows:Sales$600000Contribution margin150000Total fixed costs120000Average total operatingassets400000What is the ROI for the year if management is able to identify a way to improve the contribution margin by $40000, assuming fixedcosts are held constant?15%° 17%8%18%

To determine the Return on Investment (ROI) for Swifty Corporation's shoe division, we need to…

Answered: Swifty Corporation recorded operating…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Contribution Margin Ratio a. Young Company budgets sales of $1,050,000, fixed costs of $80,300, and variable costs of $357,000. What is the contribution margin ratio for Young Company? D% b. If the contribution margin ratio for Martinez Company is 39%, sales were $627,000, and fixed costs were $190,730, what was the operating income?
Ma3. Nike Corp. recorded operating data for its shoe division for the year as follows: Sales - $12160000 Contribution margin - 380000 Controllable fixed costs - 120000 Average total operating assets - 760000 What is the controllable margin for the year? A.$260000 B.32% C.$380000 D.50%
H1.
Green Valley Corp.'s contribution format income statement for the most recent month follows: Sales $ 506,000 Variable expenses 236,500 Contribution margin 269,500 Fixed expenses 241,700 Net operating income $ 27,800 Required: a. Compute the degree of operating leverage to two decimal places. b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 3% increase in sales. c. If Green Valley’s competitor Black Mountain Inc. has a degree of operating leverage as 8, which company has the higher operating risk?
The following data are available for the Valentine Corporation for a recent month: Product A Product B Product C Total Selling price $23 $69 $115 Sales $115,000 $172,500 $287,500 |Variable |$91,000 $104,000 $27,000 Expenses Contribution $24,000 $68,500 $260,500 Margin Fixed $55,000 Expenses Net Operating Income What is the sales revenue required from Product C at the break even point?
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Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000 units) $ 240,000 $ 30.00 Variable expenses 152,000 19.00 Contribution margin 88,000 $ 11.00 Fixed expenses 55,000 Net operating income $ 33,000 Can you please help me solve for the following: A. What would be the revised net operating income per month if the sales volume increases by 60 units? B. What would be the revised net operating income per month if the sales volume decreases by 60 units? C. What would be the revised net operating income per month if the sales volume is 7,000 units?

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